Zacks_Analysts' Blog : Qualcomm Enhances Snapdragon Usage - Analyst Blog

Qualcomm Inc (QCOM) recently unveiled its Snapdragon S4 processor for tablet devices powered by Microsoft Corporation’s (MSFT) latest Windows 8 operating system. The Windows-based tablet also features AT&T’s (T) lightening fast 4G network based on Long Term Evolution (LTE) technology.

Microsoft has decided to install Snapdragon S4 processor in its Windows 8-based devices as it will reduce battery consumption while using 3G/LTE networks. Moreover, this new processor will also support increased downloading speed and higher graphics, which will further improve the efficiency of the Window-based devices.

It is for the first time mobile chipsets will be deployed to run the new Windows 8 software that will allow quick start to the PC and easy access to the network.

Qualcomm is one of the leading chipset suppliers for the smartphones. Most of the Android-enabled smartphones use Qualcomm processor. The new Window phone 7 smartphones from Nokia Corporation (NOK) also use Qualcomm’s chipsets. Moreover, the latest addition to Qualcomm’s chipset portfolio is the massively popular iPhone 4S.

Going forward, we believe that such massive demand for Qualcomm processor will lead to huge market traction for the company. In the fourth quarter of 2011, Qualcomm shipped approximately 127 million chipsets and is expected to ship around 146 – 154 million MSM chipsets during the first quarter of fiscal 2012.

Apart from gaining market share in PC and smartphone markets, the acquisition of Atheros Communications Inc. in 2011, a manufacturer of Wi-Fi chips for televisions, video games, printers, and other home devices, will allow the company to make inroads in the consumer electronics segment.

PC maker Lenovo, who will be launching its first smart TV in China, will be installing Qualcomm’s popular Snapdragon processor in it. Such increased product usage will further help the company to expand its market share and counter competition from close rivals.

Currently, Qualcommhas a Zacks #3 Rank, implying a short-term Hold rating on the stock.

Qualcomm Inc. designs, develops, and supplies semiconductors and collects royalties on wireless handheld devices and infrastructure based on its dominant position in CDMA and other related technology patents.